Can Darden Restaurants Survive Another COVID-19 Lockdown?
Unlike the retail space, restaurants haven't seen many COVID-19-related bankruptcies, undoubtedly because takeout and delivery served as a lifeline for the industry during the pandemic, whereas most retailers were completely shut down for periods of time.
Darden Restaurants (NYSE: DRI) had a special advantage over many of its casual dining rivals as it had an established and robust off-premise business in place when the pandemic hit. That doesn't mean the owner of Olive Garden and Longhorn Steakhouse wasn't hurt -- carryout can't offset the hit it took from closed dining rooms, and sales still dropped 43% year over year last quarter. However, it allowed the restaurant to continue generating revenue.
Shares of Darden are down 24% year to date, though they've rallied from the stock market's low point, more than tripling in value. But if another coronavirus wave sweeps over the country and states lock down again, could the casual dining leader withstand the reverberations again?
Source Fool.com
